Centre to save Rs 18,000 cr by removing fake accounts from welfare schemes

About 17.1 million duplicate or ineligible farmers receiving PM Kisan benefits and 3.3 million fake or duplicate MGNREGA beneficiaries have been removed

The central government anticipates saving Rs 18,000 crore in the current financial year by identifying and eliminating fake beneficiaries across various welfare schemes, according to a report by the Economic Times. Collaborating with states, the Centre has launched a verification drive targeting beneficiaries of fertiliser subsidies, PM Kisan Samman Nidhi, and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). A significant number of duplicate or fake beneficiaries have already been removed from these schemes.

The PM Kisan scheme, which provides Rs 6,000 annually to smaller farmers, will contribute to saving Rs 9,000 crore in the current financial year. About 17.1 million duplicate or ineligible farmers receiving PM Kisan benefits have been removed from the database. Since its launch in February 2019, Rs 2.40 trillion has been disbursed to 115 million farmers through the scheme.

 

In addition to the PM Kisan scheme, a separate drive has been launched to prevent the diversion of subsidised agricultural fertilisers for industrial use. Fertiliser squads have been formed to curb this practice, resulting in the seizure of 80,000 agrochemical bags and the registration of 30 first information reports (FIRs). The government provides urea at a highly subsidised rate of Rs 266 per bag (45 kg) to farmers, incurring a subsidy of about Rs 2,500 per bag. The Budget for FY24 allocated Rs 1.75 trillion for fertiliser subsidies, indicating that the fertiliser subsidy bill might exceed the budgeted amount by Rs 40,000 crore, reaching Rs 2.25 trillion by the end of the ongoing financial year.

Regarding MGNREGA, the government initiated a drive last year to eliminate almost 3.3 million duplicate or fake job cards, aiming to save about Rs 4,000 crore. Despite a reduced budget allocation of Rs 60,000 crore for MGNREGA in the 2023-24 budget, efforts are underway to curb leakages and optimise the utilisation of funds.